Amazon launches online computer store

NEWS Amazon.com has launched an online computer store in a bid to boost profit margins from its fast growing electronics unit. The bookseller has joined forces with computer reseller Ingram Micro to sell computers and software from Apple, IBM, HP, Toshiba and Compaq. Under the terms of the alliance Amazon will provide the sales platform with Ingram Micro overseeing inventory and shipping. The company has a similar agreement with the online division of toy retailer Toys R Us. Despite spending $250m over the past few years on distribution centres, recent partnerships are increasingly seeing Amazon move away from the distribution and supply side to focus on sales. While the global slowdown in computer sales looks set to continue, Amazon has said it expects the new online store to generate substantial profit for its electronics division. In last quarter results, the electronics unit - which includes tools, kitchen appliances and consumer electronic products -triumphed as the fastest growing sector of the company. The company is aiming for a pro forma profitability by the end of this year.